Venture Capital Programs
Venture capital programs encourage investors to make equity capital investments in British Columbia small businesses that will enhance and diversify the provincial economy. The government recognizes that creating new small businesses and expanding existing ones will contribute to a healthy economy. These programs give small business continuous access to early-stage venture capital to help them develop and expand.
Venture Capital Policy Review
Technology is a key sector in the BC Jobs Plan, and venture capital is a vital component of the Province's ability to accelerate economic performance through entrepreneurship, innovation, and commercialization of technology. For BC to maximize the economic benefits from venture capital backed technology businesses, and compete successfully with other jurisdictions, a clear set of venture capital policy objectives, desired outcomes and action plan is needed.
The Ministry of International Trade and the Ministry of Technology, Innovation and Citizens' Services are conducting a review of BC's venture capital policies this fall, and anticipate that the review will be complete by the spring of 2015.
The Province has successful venture capital tax credit programs for angel and early stage venture capital investment that have been in place for over 20 years. The venture capital review will build on those successes and government's continuing commitments to enhance access to capital for the technology sector.
There will be consultation processes with venture capital stakeholders at various stages of the review.
For more information, please contact:
Investment Capital Branch
Ministry of International Trade
Internal Review of the Investment Capital Branch
In 2013 the Investment Capital Branch retained auditing firm KPMG to conduct an internal review of its processes and procedures for the purpose of identifying risks and assessing the branch's controls, also to make recommendations to improve the controls and mitigate the risks associated with the delivery of the venture capital tax credit program. KPMG's report and the Investment Capital Branch's response to the report's findings are below.
Tax Credit Budget Update:
2014 Tax Budget Year
The 2014 tax budget year started on March 2, 2014 and will end on March 1, 2015.
As tax credit budgets are limited, tax credits are available on a first come first serve basis. Eligible Business Corporations and Venture Capital Corporations, with Equity Authorizations for the 2014 tax budget year, should claim tax credits on behalf of their investors as soon as possible after investment has been raised, and investors have completed a Share Purchase Report.
Tax credits are claimed through the Electronic Tax Credit Application system (eTCA) - link immediately below. Instructions on how to claim tax credits, and print tax credit certificates, are in How to Access eTCA.
Electronic Tax Credit Application System
Tax Credit Budgets
The Province of British Columbia does not in any way guarantee nor express an opinion as to the value of any shares issued by a venture capital corporation or an eligible business corporation, the financial condition of the corporation or the merits of any investment or business proposal.